No.

of Printed Pages : 6 ECO-011

BACHELOR'S DEGREE PROGRAMME

Term-End Examination 08189
December, 2017

ELECTIVE COURSE : COMMERCE

ECO-011 : ELEMENTS OF INCOME TAX

Time : 2 hours Maximum Marks : 50

Note : Question no. 1 is compulsory and attempt any three

questions from the remaining questions.

1. From the following particulars of Shri Ram 14

Kishore, a Manager of a •private limited
company, compute his taxable income from salary
for the assessment year 2017-18.
(a) Basic Salary 40,000 per month.
(b) D.A. 6,000 per month.
(c) Tiffin Allowance 375 per month.
(d) Night Allowance 225 per month.
(e) Own contribution towards R.P.F. 45,800.
(f) Employer's contribution to R.P.F. 61,000.
(g) Interest on P.F. during August 2016 42,900
@ 13% per annum.
(h) House rent allowance 7,200 per month,
Rent paid for the house 1,00,000 p.a.

ECO-011 1 P.T.O.
 (i) Free supply of water and electricity for
which payment was made by the employer
Z 42,000.
(j) His employer provided him a motor car
(1.6 litre cubic capacity of engine) for his
official as well as private use.
(k) The company gave him a gift of laptop of
Z 25,800 on its founder's day.
(1) Shri Ram Kishore paid actual expenses
Z 3,200 relating to tiffin.

2. What do you mean by 'Provident Fund' ? Discuss 4+8

the different types of Provident funds of which a
salaried employee may be a member including
taxations thereof.

3. (a) Dr. Prakash Chand Gupta has a house 6+6

property in Aligarh whose Municipal
Valuation is ! 2,00,000. Its fair Rental Value
is Z 2,40,000. This property was self
occupied by Dr. Gupta from 1-4-2016 to
31-7-2016. W.e.f 1.8.2016 it was let out at
Z 14,500 per month. Compute the annual
value of the house property for the
assessment year 2017-18, for which
Dr. Gupta had paid the municipal taxes
Z 20,000 on 28.2.2017. These taxes include
Z 5,000 of previous year immediately
preceding the previous year.
(b) "The incidence of income tax depends upon
the residential status of an assessee".
Discuss.

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4. (a) Mr. Akram purchased a property for 6+6
1,60,000 in 1975-76 and gifted it to his son
Mr. Yusuf on 31.3.1981, when the market
value of the property was 2,80,000. The
fair market value of that property as on
1.4.1981 was 3,00,000. Mr. Yusuf sold the
property in February 2015 for 26,60,000.
For the purpose of sale of the asset an
advertisement was given for which
1,31,000 were incurred. Compute the
capital gain or loss for the assessment year
2015-16.
(b) Explain the following terms in the context
of the I.T. Act.
(i) Short term Capital Assets
(ii) Transfer of Capital Assets
(iii) Cost of improvement

5. State the deductions that are allowed in 12

computing taxable income under the head
'Income from other sources'.

6. Write short notes on any two of the following : 6+6

(a) Deduction of Tax at source
(b) Previous year
(c) Residential status of an H.U.F.
(d) Death cum Retirement Gratuity

ECO-011 3
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(d) tit II-91 225 Mrcl I

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cgiOZ 42,900 @ 13% Mrcf all I
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rqqr z 1,00,000

ECO-011 4 P.T.O.
 (i) c4 a-rqq-r f r 9jrr-dr-i
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z 3,200 T-r-dT9 fiT I

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f--Trr I 414)1-[ m1 ilul-11 cht fiqi-Tur
01 ,4 2017-18 t 1 , 1t41rochr
z 20,0007--dri sl.CnT -4 28.2.2017
-FEFTIT t cr,i z 5,000 t mtTrd -4
Trd Vffr-1:19*el

(b) " 3-171—*—{ %TR chtqlcif ch') FIc11(4)q #2,Tfd. f-ilfT

chtc11 t1" t-ARR-cii(

ECO-011 5 P.T.O.
4. (a) fliTZT 31-T71:1 i - 1.11--ff-T-T 1975-76 -IT 6+6
1,60,000 14 1T{1a 2,11 3474 V 1k TIT
31.3.1981 `4a chi I ate Til=174 011 ■3-11(
Tc 2,80,000 til .ff21T 1.4.1981 ch) dti Trizirff
-1:F1 3,00,000 WT I -FR. TIT 4
1:11:14ft chi -Trqt 2015 4 26,60,000 4
I TFPTF-U ml fd-jTcri
NI fqW*1 cqi 1,31,000 317T1 I 1-9-qt{uT
a 2015-16 t- 31QTat
it um! 7I
(b) 1 4-1 4;1 alTW{ 3-1NfiziTT mIcINT9
311t171 cm(sii 11A7
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(ii) -et-
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ITT -WT4 ch

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(b) TM ati
(c) ifra-R c fa--a-Fr fT-q-fu
(d) 1=7j - tTT 31-4WPT 13-9-t

ECO-011 6